Airlines Fight Malaysian Watchdog Ruling

Malaysia Airlines (MAS) and AirAsia have formally protested the hefty fines proposed by Malaysian authorities over alleged violations of the country’s competition law, and at least one carrier also has asked for a hearing so it can argue its case.

The accusations are related to the two carriers’ short-lived collaboration agreement that ended in 2012, which the Malaysian Competition Commission alleges contravened the country’s Competition Act. The Commission issued an initial decision on Sept. 6, when it said it intended to impose fines of RM10 million ($3.2 million) on each carrier. The airlines criticized the proposed decision, and have followed up with written representations.

MAS last week said it is waiting for the Commission to schedule dates for its hearing. The carrier says its written submission “demonstrates that it did not enter into a market-sharing agreement in contravention” of the competition law, and it “looks forward to reinforcing that point at the oral representation.”

AirAsia executives told local media that their carrier also lodged a written representation with the Commission.

Commission officials are believed to be aiming to release a final decision on the case in January.